BHUBANESWAR: The State Government today urged the Centre to share 75 percent of the cost of three proposed pumped hydroelectric storage facilities in the state from the National Clean Energy Fund (NCEF).
Reiterating his demand for a major share from NCEF in a letter to Prime Minister Narendra Modi, Chief Minister Naveen Patnaik said the state government has conducted pre-feasibility studies of three pump storage hydroelectric facilities at Upper Indravati with a capacity of 600 MW, Balimela (400 MW) and Upper Kolab (320 MW).
These three projects with a projected generating capacity of 1320 MW would require an investment of Rs 3,950 crore.
Detailed project report of Upper Indravati Hydro-electric project is under preparation.
"Financial assistance (grant) to the tune of 75 percent of the estimated cost of each pump storage project may be provided from the NCEF to bring down the cost of power from these projects in order to make the tariff affordable," the Chief Minister said.
Once the institutional mechanism is established and in-principle clearance is accorded by the government of India, specific proposals will be submitted by the state government for execution of renewable energy projects including hydro-electric projects, more particularly, the PSPs, he added.
"Hydro-electric projects having installed capacity of more than 25 MW, especially the Pump Storage Hydroelectric Projects, may be considered as renewable energy projects. These projects would help tremendously in meeting the peak demand and also in balancing the Grid," Patnaik said in the letter.
The Chief Minister said that the coal bearing states have to bear the brunt of negative externalities on account of setting up of the pit-headed thermal plants to cater to the power requirement of the country while some other states have the locational advantage of harnessing the renewable energy.
"It is therefore, imperative that the coal bearing states should be assigned reasonably lower limits for Renewable Power Obligation (RPO). Besides, the renewable energy projects in the coal bearing states should be funded from the NCEF," Patnaik said.
Expressing annoyance about non-revision of coal royalty for four years, the Chief Minister said the Centre would collect clean environment cess of about Rs 6,400 crore from the state in 2016-17.
The state has the legitimate expectation of getting a its share from the NCEF, he said.